The recent Bitcoin price dip has triggered significant unease among speculators, evident from the highest single-day selling activity since the Terra LUNA collapse.
On-chain data from Glassnode reveals a surge in panic selling among Bitcoin speculators as the price corrected towards $40,000.
Glassnode data depicts short-term holders (STHs) shedding over $2 billion in BTC on December 12 alone.
BTC Sees Record Single-Day Drop
This week, Bitcoin experienced its most substantial single-day drop of 2023, reaching a staggering 8.1% at one point. Subsequently, the more speculative segment of Bitcoin investors followed suit, evidently reducing their holdings, signaling a moment of apprehension towards the market outlook.
Glassnode data indicates that STHs, holding BTC for 155 days or less, moved $1.93 billion worth of coins to exchanges on December 11, followed by an additional $2.08 billion the next day.
Both days recorded the highest selling pressure from STHs in the long term, involving entities in both profit and loss categories.
The last instance of single-day selling surpassing the $2 billion mark was in June 2022, reacting to the impending collapse of Celsius, a blockchain firm.
In a tweet on December 12, James Van Straten, a research and data analyst at CryptoSlate, highlighted the significance of the STH movements this week, citing, “$2B in total, with $1.1B in loss.”
While BTC volumes in terms of trade were not as significant, December 12 saw the highest tally since early July this year, when BTC/USD rebounded above $30,000 after touching $25,000.
Resilience in the Face of Resistance
Glassnode pointed out various on-chain indicators hinting at potential weariness among STHs from the bullish trend.
Profit-taking near the recent 19-month highs around $45,000 seemed noteworthy, indicating possible saturation of demand.
The Mayer Multiple, describing the current spot price against its 200-week moving average, is approaching 1.5, historically a resistance level in Bitcoin’s cycles, including the November 2021 ATH.
